NICE Reports Strong Finish to 2022 With 26% Cloud Revenue Growth for the Fourth Quarter
NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year ended December 31, 2022, as compared to the corresponding period of the previous year.
Fourth Quarter 2022 Financial Highlights
GAAP
Non-GAAP
Total revenue was $568.6 million and increased 10%
Total revenue was $568.6 million and increased 10% ($575.8 million in constant currency, up 12%)
Cloud revenue was $358.9 million and increased 26%
Cloud revenue was $358.9 million and increased 26% ($361.4 million in constant currency, up 27%)
Cloud gross margin was 64.5% compared to 60.7% last year
Cloud gross margin was 70.5% compared to 68.2% last year
Total gross margin was 68.2% compared to 67.9% last year
Total gross margin was 72.6% compared to 73.0% last year
Operating income was $87.8 million and increased 35%
Operating income was $162.8 million and increased 12%
Operating margin was 15.4% compared to 12.6% last year
Operating margin was 28.6%, compared to 28.2% last year
Diluted EPS was $1.07 and increased 41%
Diluted EPS was $2.04 and increased 18%
Operating cash flow increased 57% to $176.7 million
Full Year 2022 Financial Highlights
GAAP
Non-GAAP
Total revenue was $2,181.3 million, and increased 14%
Total revenue was $2,181.3 million, and increased 13% ($2,204.1 million in constant currency, up 14%)
Cloud revenue was $1,295.3 million and increased 27%
Cloud revenue was $1,295.3 million and increased 27% ($1,303.0 million in constant currency, up 27%)
Cloud gross margin was 63.5% compared to 59.7% last year
Cloud gross margin was 70.0% compared to 67.7% last year
Total gross margin was 68.7% compared to 67.5% last year
Total gross margin was 73.1% compared to 72.6% last year
Operating income was $335.2 million and increased 27%
Operating income was $625.1 million and increased 15%
Operating margin was 15.4% compared to 13.7% last year
Operating margin was 28.7%, compared to 28.2% last year
Diluted EPS was $4.00 and increased 34%
Diluted EPS was $7.62 versus and increased 17%
Operating cash flow increased 4% to $479.7 million
“2022 was another landmark year for NICE capped off by strong fourth quarter results as we exceeded the high end of our guidance range with full-year total revenue growth of 14% at constant currency, as well as full-year earnings per share growth of 17%. These excellent results, together with further growth in profitability, strong free cash flow and a rock-solid balance sheet, provides us the industry-leading financial position to continue to grow our business, increase profitability and further expand our competitive lead in our markets,” said Barak Eilam, CEO, NICE.
Mr. Eilam continued, “We are in a winning competitive position operationally, innovatively, and financially, and this provides us significant opportunities ahead to capture a large and expanding market. These opportunities include cloud expansion in a vastly underpenetrated enterprise market, accelerating demand for a complete platform as the market standard, the rise of AI, and a favorable competitive landscape.”
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues: Fourth quarter 2022 total revenues increased 10% to $568.6 million compared to $515.5 million for the fourth quarter of 2021.
Full year 2022 total revenues increased 14% to $2,181.3 million compared to $1,921.2 million for the full year 2021.
Gross Profit: Fourth quarter 2022 gross profit was $387.6 million compared to $350.2 million for the fourth quarter of 2021. Fourth quarter 2022 gross margin was 68.2% compared to 67.9% for the fourth quarter of 2021.
Full year 2022 gross profit was $1,497.6 million compared to $1,296.7 million for the full year 2021. Full year 2022 gross margin was 68.7% compared to 67.5% for the full year 2021.
Operating Income: Fourth quarter 2022 operating income was $87.8 million compared to $65.1 million for the fourth quarter of 2021. Fourth quarter 2022 operating margin was 15.4% compared to 12.6% for the fourth quarter of 2021.
Full year 2022 operating income was $335.2 million compared to $263.9 million for the full year 2021. Full year 2022 operating margin was 15.4% compared to 13.7% for the full year 2021.
Net Income: Fourth quarter 2022 net income was $71.2 million compared to $51.2 million for the fourth quarter of 2021. Fourth quarter 2022 net income margin was 12.5% compared to 9.9% for the fourth quarter of 2021.
Full year 2022 net income was $265.9 million compared to $199.2 million for the full year 2021. Full year 2022 net income margin was 12.2% compared to 10.4% for the full year 2021.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the fourth quarter of 2022 increased 41% to $1.07 compared to $0.76 in the fourth quarter of 2021.
Fully diluted earnings per share for the full year 2022 increased 34% to $4.00 compared to $2.98 for the full year 2021.
Operating Cash Flow and Cash Balance: Fourth quarter 2022 operating cash flow was $176.7 million and full year 2022 operating cash flow was $479.7 million.
In the fourth quarter 2022, $24.5 million was used for share repurchases and for the full year 2022, $144.9 million were used for share repurchases.
As of December 31, 2022, total cash and cash equivalents, and short-term investments were $1,571.5 million. Our debt, net of a hedge instrument, was $542.4 million, resulting in net cash and investments of $1,029.1 million.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues: Fourth quarter 2022 total revenues increased 10% to $568.6 million (up 12% in constant currency to $575.8 million) compared to $515.5 million for the fourth quarter of 2021.
Full year 2022 total revenues increased 13% to $2,181.3 million (up 14% in constant currency to $2,204.1 million) compared to $1,925.7 million for the full year 2021.
Gross Profit: Fourth quarter 2022 Non-GAAP gross profit increased to $412.6 million compared to $376.4 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP gross margin was 72.6% compared to 73.0% for the fourth quarter of 2021.
Full year 2022 gross profit was $1,594.6 million compared to $1,397.6 million for the full year 2021. Full year 2022 gross margin was 73.1% compared to 72.6% for the full year 2021.
Operating Income: Fourth quarter 2022 Non-GAAP operating income increased to $162.8 million compared to $145.6 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP operating margin was 28.6% compared to 28.2% for the fourth quarter of 2021.
Full year 2022 operating income was $625.1 million compared to $543.9 million for the full year 2021. Full year 2022 operating margin was 28.7% compared to 28.2% for the full year 2021.
Net Income: Fourth quarter 2022 Non-GAAP net income increased to $135.3 million compared to $116.7 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP net income margin totaled 23.8% compared to 22.6% for the fourth quarter of 2021.
Full year 2022 net income was $506.8 million compared to $436.3 million for the full year 2021. Full year 2022 net income margin was 23.2% compared to 22.7% for the full year 2021.
Fully Diluted Earnings Per Share: Fourth quarter 2022 Non-GAAP fully diluted earnings per share increased 18% to $2.04 compared to $1.73 for the fourth quarter of 2021.
Fully diluted earnings per share for the full year 2022 increased 17% to $7.62 compared to $6.52 for the full year 2021.
First Quarter and Full Year 2023 Guidance:
The Company plans to fully execute the $250 million share repurchase program announced last quarter in its entirety by the end of 2023.
With year-over-year cloud revenue growth expected to be in a range of 22% to 25% for the full year 2023, the Company is providing the following total revenue and EPS guidance:
First Quarter 2023:
First quarter 2023 Non-GAAP total revenues are expected to be in a range of $559 million to $569 million, representing 7% growth year over year at the midpoint.
First quarter 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $1.92 to $2.02, representing 9% growth year over year at the midpoint.
Full Year 2023:
Full year 2023 Non-GAAP total revenues are expected to be in a range of $2,345 million to $2,365 million, representing 8% growth at the midpoint compared to full year 2022.
Full year 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $8.28 to $8.48, representing 10% growth at the midpoint compared to full year 2022.
Quarterly Results Conference Call
NICE management will host its earnings conference call today February 23, 2023, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.
The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event.
Explanation of Non-GAAP measures
Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments. FASB issued an accounting update, ASU2021-08, Business Combinations, in the fourth quarter of 2021. The amendments in ASU 2021-08 require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Before this guidance and through December 31, 2020, business combination accounting rules required recognizing a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to such liability was based on its fair value at the date of acquisition. Effective January 1, 2021, the Company early adopted the new guidance retroactively to the start of the year. The Company has applied the new guidance retrospectively to all business combinations for which the acquisition date occurred on or after January 1, 2021, and therefore comparative financials for periods during 2021 have been adjusted accordingly to recognize the full amount of revenue associated with acquisitions.
The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.
Explanation of Constant Currency
NICE presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current results for transactions in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the current period.
Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the exchange rates in effect in the last month of the reporting period. NICE has provided this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business and the global economy and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).
You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.
NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
December 31,
December 31,
2022
2021
Unaudited
Audited
ASSETSCURRENT ASSETS:
Cash and cash equivalents$
529,596
$
378,656
Short-term investments
1,041,943
1,046,095
Trade receivables
515,730
395,583
Debt hedge option
122,323
292,940
Prepaid expenses and other current assets
206,372
184,604
Total current assets
2,415,964
2,297,878
LONG-TERM ASSETS:
Property and equipment, net
159,284
145,654
Deferred tax assets
119,821
55,246
Other intangible assets, net
209,605
295,378
Operating lease right-of-use assets
102,893
85,055
Goodwill
1,617,118
1,606,756
Prepaid expenses and other long-term assets
231,496
224,445
Total long-term assets
2,440,217
2,412,534
TOTAL ASSETS
$
4,856,181
$
4,710,412
LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:
Trade payables$
56,019
$
36,121
Deferred revenues and advances from customers
338,930
330,459
Current maturities of operating leases
13,525
19,514
Debt
209,292
395,946
Accrued expenses and other liabilities
526,527
487,547
Total current liabilities
1,144,293
1,269,587
LONG-TERM LIABILITIES:
Deferred revenues and advances from customers
57,211
66,606
Operating leases
99,261
81,185
Deferred tax liabilities
6,024
7,429
Debt
455,382
429,267
Other long-term liabilities
38,587
18,379
Total long-term liabilities
656,465
602,866
SHAREHOLDERS' EQUITY
Nice Ltd's equity
3,042,085
2,825,085
Non-controlling interests
13,338
12,874
Total shareholders' equity
3,055,423
2,837,959
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
4,856,181
$
4,710,412
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
Quarter ended
Year to date
December 31,
December 31,
2022
2021
2022
2021
Unaudited
Audited
Unaudited
Audited
Revenue:
Cloud$
358,850
$
285,201
$
1,295,323
$
1,018,624
Services
161,208
166,376
650,116
660,083
Product
48,502
63,896
235,855
242,443
Total revenue
568,560
515,473
2,181,294
1,921,150
Cost of revenue:
Cloud
127,309
112,127
472,805
410,671
Services
46,339
47,341
183,938
191,137
Product
7,332
5,777
26,945
22,648
Total cost of revenue
180,980
165,245
683,688
624,456
Gross profit
387,580
350,228
1,497,606
1,296,694
Operating expenses:
Research and development, net
81,964
75,332
306,073
271,187
Selling and marketing
148,198
149,662
609,833
536,192
General and administrative
69,594
60,167
246,527
225,406
Total operating expenses
299,756
285,161
1,162,433
1,032,785
Operating income
87,824
65,067
335,173
263,909
Financial and other expense (income), net
(9,127)
7,696
(10,159)
23,290
Income before tax
96,951
57,371
345,332
240,619
Taxes on income
25,765
6,210
79,387
41,396
Net income
$
71,186
$
51,161
$
265,945
$
199,223
Earnings per share:
Basic$
1.11
$
0.81
$
4.17
$
3.15
Diluted$
1.07
$
0.76
$
4.00
$
2.98
Weighted average shares outstanding:
Basic
63,961
63,382
63,790
63,189
Diluted
66,285
67,245
66,465
66,896
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
Quarter ended
Year to date
December 31,
December 31,
2022
2021
2022
2021
Unaudited
Audited
Unaudited
Audited
Operating Activities
Net income
$
71,186
$
51,161
$
265,945
$
199,223
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
47,469
47,350
176,546
184,092
Stock based compensation
49,015
49,968
182,704
153,030
Amortization of premium and discount and accrued interest on marketable securities
1,160
1,855
8,322
11,867
Deferred taxes, net
(33,236)
(9,114)
(56,862)
(39,316)
Changes in operating assets and liabilities: Trade Receivables
(41,290)
(40,149)
(126,925)
(85,778)
Prepaid expenses and other assets
6,983
(43,405)
(33,290)
(79,624)
Trade payables
18,280
9,254
19,923
(389)
Accrued expenses and other liabilities
47,041
41,578
36,758
64,179
Operating lease right-of-use assets
3,579
2,758
20,393
15,075
Deferred revenues
8,749
(2,276)
6,417
30,770
Operating lease liabilities
(3,703)
(3,206)
(26,191)
(18,011)
Amortization of discount on debt
1,151
2,946
4,582
14,469
Loss in respect of debt extinguishment
-
5,893
1,206
13,969
Other
322
(1,955)
187
(1,740)
Net cash provided by operating activities
176,706
112,658
479,715
461,816
Investing Activities
Purchase of property and equipment
(10,941)
(3,658)
(31,893)
(24,771)
Purchase of Investments
(30,840)
(40,233)
(396,297)
(322,129)
Proceeds from Investments
33,156
44,681
355,560
270,645
Capitalization of internal use software costs
(12,826)
(10,453)
(49,997)
(42,440)
Other
-
-
276
-
Payments for business and asset acquisitions, net of cash acquired
(30,000)
360
(30,000)
(142,804)
Net cash used in investing activities
(51,451)
(9,303)
(152,351)
(261,499)
Financing Activities
Proceeds from issuance of shares upon exercise of options
529
942
953
4,426
Purchase of treasury shares
(24,543)
(24,272)
(144,944)
(73,180)
Dividends paid to noncontrolling interest
-
(953)
(376)
(1,754)
Purchase of subsidiaries shares from non-controlling interest
-
(14,000)
-
(14,000)
Repayment of debt
(4)
(83,993)
(20,132)
(177,308)
Net cash used in financing activities
(24,018)
(122,276)
(164,499)
(261,816)
Effect of exchange rates on cash and cash equivalents
3,877
(119)
(8,425)
(2,112)
Net change in cash, cash equivalents and restricted cash
105,114
(19,040)
154,440
(63,611)
Cash, cash equivalents and restricted cash, beginning of period
$
427,982
$
397,696
$
378,656
$
442,267
Cash, cash equivalents and restricted cash, end of period
$
533,096
$
378,656
$
533,096
$
378,656
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
Quarter ended
Year to date
December 31,
December 31,
2022
2021
2022
2021
GAAP revenues
$
568,560
$
515,473
$
2,181,294
$
1,921,150
Valuation adjustment on acquired deferred cloud revenue
-
-
-
4,372
Valuation adjustment on acquired deferred services revenue
-
-
-
175
Non-GAAP revenues
$
568,560
$
515,473
$
2,181,294
$
1,925,697
GAAP cost of revenue
$
180,980
$
165,245
$
683,688
$
624,456
Amortization of acquired intangible assets on cost of cloud
(18,940)
(18,796)
(74,791)
(72,015)
Amortization of acquired intangible assets on cost of services
-
(669)
(377)
(4,228)
Amortization of acquired intangible assets on cost of product
(241)
(277)
(1,017)
(1,130)
Valuation adjustment on acquired deferred cost of cloud
13
21
54
97
Cost of cloud revenue adjustment (1)
(2,451)
(2,661)
(8,840)
(7,949)
Cost of services revenue adjustment (1)
(3,233)
(3,597)
(11,497)
(10,513)
Cost of product revenue adjustment (1)
(147)
(185)
(548)
(595)
Non-GAAP cost of revenue
$
155,981
$
139,081
$
586,672
$
528,123
GAAP gross profit
$
387,580
$
350,228
$
1,497,606
$
1,296,694
Gross profit adjustments
24,999
26,164
97,016
100,880
Non-GAAP gross profit
$
412,579
$
376,392
$
1,594,622
$
1,397,574
GAAP operating expenses
$
299,756
$
285,161
$
1,162,433
$
1,032,785
Research and development (1)
(9,736)
(9,980)
(33,561)
(25,221)
Sales and marketing (1)
(13,993)
(14,495)
(57,114)
(42,021)
General and administrative (1)
(20,549)
(19,403)
(73,540)
(70,776)
Amortization of acquired intangible assets
(5,748)
(10,538)
(28,901)
(41,308)
Valuation adjustment on acquired deferred commission
43
54
196
215
Non-GAAP operating expenses
$
249,773
$
230,799
$
969,513
$
853,674
GAAP financial and other expense (income), net
$
(9,127)
$
7,696
$
(10,159)
$
23,290
Amortization of discount on debt and loss from extinguishment of debt
(1,151)
(8,874)
(5,788)
(28,279)
Non-GAAP financial and other income, net
$
(10,278)
$
(1,178)
$
(15,947)
$
(4,989)
GAAP taxes on income
$
25,765
$
6,210
$
79,387
$
41,396
Tax adjustments re non-GAAP adjustments
12,037
23,898
54,897
71,157
Non-GAAP taxes on income
$
37,802
$
30,108
$
134,284
$
112,553
GAAP net income
$
71,186
$
51,161
$
265,945
$
199,223
Valuation adjustment on acquired deferred revenue
-
-
-
4,547
Valuation adjustment on acquired deferred cost of cloud revenue
(13)
(21)
(54)
(97)
Amortization of acquired intangible assets
24,929
30,280
105,086
118,681
Valuation adjustment on acquired deferred commission
(43)
(54)
(196)
(215)
Share-based compensation (1)
50,061
50,321
185,052
154,213
Acquisition related expenses (2)
48
-
48
2,862
Amortization of discount on debt and loss from extinguishment of debt
1,151
8,874
5,788
28,279
Tax adjustments re non-GAAP adjustments
(12,037)
(23,898)
(54,897)
(71,157)
Non-GAAP net income
$
135,282
$
116,663
$
506,772
$
436,336
GAAP diluted earnings per share
$
1.07
$
0.76
$
4.00
$
2.98
Non-GAAP diluted earnings per share
$
2.04
$
1.73
$
7.62
$
6.52
Shares used in computing GAAP diluted earnings per share
66,285
67,245
66,465
66,896
Shares used in computing non-GAAP diluted earnings per share
66,285
67,245
66,465
66,896
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands
(1)
Share-based Compensation
Quarter ended
Year to date
December 31,
December 31,
2022
2021
2022
2021
Cost of cloud revenue
$
2,451
$
2,661
$
8,840
$
7,949
Cost of services revenue
3,233
3,597
11,497
10,513
Cost of product revenue
147
185
548
595
Research and development
9,736
9,980
33,561
25,221
Sales and marketing
13,993
14,495
57,114
42,021
General and administrative
20,501
19,403
73,492
67,914
$
50,061
$
50,321
$
185,052
$
154,213
(2)
Acquisition related expenses
Quarter ended
Year to date
December 31,
December 31,
2022
2021
2022
2021
Research and development
-
-
-
-
Sales and marketing
-
-
-
-
General and administrative
48
-
48
2,862
48
-
48
2,862
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